AfDB, 2020-2027, Affirmative Finance Action for Women in Africa (AFAWA)
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The African Development Bank (AfDB) has applied to Sida for funding of 75 million SEK to carry out the "Affirmative Finance Action for Women in Africa (AFAWA) initiative" in Africa during the period 2020-2022. The total period of implementation of the program is 5 years with the possibility for extension though the Swedish support is for 2020-2022. The int...
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- B03 - Contributions to specific-purpose programmes and funds managed by international organisations (multilateral, INGO)
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The African Development Bank (AfDB) has applied to Sida for funding of 75 million SEK to carry out the "Affirmative Finance Action for Women in Africa (AFAWA) initiative" in Africa during the period 2020-2022. The total period of implementation of the program is 5 years with the possibility for extension though the Swedish support is for 2020-2022. The intervention aims at closing the financing gap for women in Africa by (i) mobilize guarantees for de-risking lending to Women Empowered Businesses (WEBs) (ii) provide direct technical assistance to Private Finance Institutions (PFIs) and WEBs and (iii) Support a conducive policy, legal and regulatory environment in the respective targeted countries to foster the participation of WEBs. Among these pillars of the intervention, the planned support from Swedish Strategy for Regional Development Cooperation with Sub-Saharan Africa will go towards the technical assistance and enabling environment components. AfDB will implement the initiative with different partners including the African Guarantee Fund, private finance institutions, governments, the African Union (AU), Regional Economic Commissions (RECs), and UN Women. The intervention’s budget for the TA and enabling environment is initially estimated to be roughly 750 Million SEK (75M USD). However, the ambition from AfDB and the commitment from donors has arisen with USD 79.945 million already mobilized from the donors in 2019. These include written commitments from the Governments of France (USD 25 million), the Netherlands (USD 27.945 million), and the United Kingdom (USD 12 million), and pledges from Italy (USD 11 million), and the European Union (USD 4 million). A Gender Equality Trust Fund is established to as a mechanism to channel these resources which is hosted within AfDB’s Gender, Women and Civil Society Department (AHGC).
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Result
The following are some of the results achieved during the reporting period. 1. Guarantee for Growth (G4G) programme - In 2023, the AFAWA G4G program significantly expanded its reach, now covering 38 countries, up from 19 countries in 2022. - In 2023, the number of financial institutions benefiting from the AFAWA initiative increased to 126 from 38 in 2022. The number of guarantees issued also grew to 157, compared to 92 in 2022. As a result, the total volume of guaranteed contracts signed in 2023 reached 186 million, demonstrating steady growth from $143.5 million in 2022. - This brought the cumulative volume of guarantees contracts to 414million USD by the end of 2023, a significant increase from 230million USD in 2022. These guarantees are projected to unblock 834 million USD in loans for Women Small and Medium Enterprises (WSMEs). This highlights the increasing financial support available to empower women entrepreneurs across Africa. - In 2023, a total of 7,028 WSMEs received loans from financial institutions across multiple countries, up from 4,784 in 2022. - In 2023, WSMEs that accessed loans though the AFAWA initiative have created 19,700 jobs, a significant increase from just 16 jobs in 2022. 2. Technical Assistance and Capacity Development - In 2023, seven financial institutions received technical assistance and capacity building support to enhance their financial infrastructure and loan management to better accommodate WSMEs. - In 2023, the bank organized four AFAWA Finance Series events in Angola, Ghana, Kenya and Nigeria, which were attended by approximately 1000 participants and involved training 175 financial institutions in gender-lense financing. These events serve as a key platform for raising awareness about the AFAWA program and on boarding new financial institutions as partners. - About 3,915 WSMEs participated in training and capacity-building programs, a significant increase from just 56 in the previous year. These entrepreneurs not only received training but were also connected with financial institutions for potential funding. This initiative was facilitated by ten women entrepreneurship enablers operating across 20 countries, in collaboration with two business development service (BDS) providers, Melanin Kapital and Sephis Foundation, which offered tailored training and support. Beyond capacity development, the BDS providers and enablers created platforms for WSMEs to network with potential lenders. For example, Melanin Kapital (BDS) hosted a conference in September 2023, where 80 WSMEs engaged with Absa Bank Kenya, a prospective lender. Additionally, the Graça Machel Trust, one of the enablers, successfully raised $2 million in investments for 80 WSMEs enrolled in its 2023 program. Enabling Environment - The bank selected 22 additional enablers were selected in 2023 making the total number of enablers to 32. The newly added enablers will conduct second and third round cohorts targeting 10,000 WSMEs across 17 countries. - In an effort to transition women from informal to formal sector, the program in 2023 launched a call for proposal and four projects were selected in five countries that will help 5,000 women entrepreneurs transition to the formal sector and facilitate access to financing. - Policy Reform Works: In 2023, AFAWA partnered with the Alliance for Financial Inclusion (AFI) to assist central banks and regulators in 20 African countries in developing gender responsive policies to enhance WSMEs access to finance. During the reported period, 13 country diagnostic studies were completed to identify policy gaps and challenges. And agreements were made with the Reserve Bank of Zimbabwe and Banque Centrale du Congo to host joining learning programs in 2024, aimed at crafting gender sensitive policies.
The AFAWA program aims to bridge the finance gap for women entrepreneurs and drastically transform the financial landscape in Africa through the following outcomes. i. Women Empowered Businesses increasingly access credit facilities from Private Finance Institutions ii. Women Empowered Businesses increasingly use financial services offered by the Private Finance Institutions iii. Private Finance Institutions improve and diversify their product offering/services to Women Empowered Businesses and iv. The Policy, legal and regulatory environment is strengthened to foster the participation of Women Empowered Businesses
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